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Abernathy Daley Research Finds Over 80% of Companies Overpay Fees on Their Retirement Plans
Abstract: Abernathy Daley 401k Consultants (“Abernathy Daley”) believes well over 80% of all corporate retirement plans have not been benchmarked by independent 3rd parties over the last 3+ years. Consequently, more than 80% of corporate plan sponsors are overpaying on plan administration, and their employees are overpaying for the investment alternatives available within the corporate retirement […]
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Majority of Plans Overpay. Cut Costs: Now is the Time to Benchmark
Over the course of our conversations during the last 12 months we have heard time and again the outrage regarding the fees and cumulative costs of 401k plan administration. Yes, we know it is a cost center. Yes, we understand that administering the 401k plan is often a thankless job. Yet being a cost center and […]
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Secure 2.0 Act: Unlocking Tax Benefits for Individuals and Plan Sponsors
The Secure 2.0 Act, a landmark legislation aimed at enhancing retirement savings, offers a plethora of tax benefits for both individuals and plan sponsors. This article delves into the potential tax advantages and estimated savings for each group. Individuals 1. Increased Catch-Up Contributions The Secure 2.0 Act raises the catch-up contribution limit from $6,500 to […]
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Your Advisor’s Best Kept Secret: Corporate 401k Fees Have Been Shrinking For Years
We have closely monitored the trends in fee levels for corporate 401(k) plans over the past five years. With increasing scrutiny on retirement plan costs, there has been a notable shift towards greater transparency and cost-effectiveness, particularly for larger plans with over $10 million in assets. We have lowered our fees to remain below market, […]
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Secure 2.0 Cheat Sheet: 7 Rule Changes You Need to Know
The SECURE 2.0 Act[1] introduced several major changes to 401(k) laws aimed at expanding coverage, increasing retirement savings, and simplifying retirement plan rules. Here are the seven key 401(k) provisions: 1. Higher Catch-Up Contribution Limits Starting in 2025, individuals aged 60-63 can make catch-up contributions to 401(k) plans up to the greater of $10,000 or […]
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Roth 401k Plan 2024 Changes Provide Greater Flexibility
The SECURE 2.0 Act[1] has brought changes regarding Roth 401(k) rules. These changes align the treatment of Roth 401(k) accounts with Roth IRAs, providing greater flexibility and diversity of tax-advantaged growth opportunities for retirement savers. Elimination of Required Minimum Distributions (RMDs) for Roth 401(k)s One of the most notable changes under SECURE 2.0 is the […]
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Secure 2.0 Series: Catch Up Contributions
Significant changes made to catch-up contributions under the SECURE 2.0 Act. These changes aim to boost retirement savings for workers closer to retirement and provide much-needed flexibility. Increased Catch-Up Contribution Limits Starting in 2025, the catch-up contribution limits for employees aged 60-63 in 401(k), 403(b), and governmental 457(b) plans will be increased to the greater […]
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Secure 2.0 Series: Matching Contributions for Student Loan Payments
New rules under the SECURE 2.0 Act allow you to potentially write off a portion of your student loan expenses through your employer’s 401(k) plan. Matching Contributions for Student Loan Payments Starting in 2024, employers can choose to amend their 401(k) plans to treat qualified student loan payments as elective deferrals for the purpose of […]
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Overpaying for Your Company’s Plan? You Are Not Alone.
We understand the importance of cost-effective plan management. However, research indicates that many companies are overpaying for their 401k administration fees. Overpaying potentially erodes retirement savings for their employees, and certainly erodes corporate profitability, as most Corporate Sponsors pay 401k administration costs. By analyzing industry data and fee structures, we gain insights into the prevalence […]
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Is your Employee Education Meeting Requirements?
5 Steps to Ensuring the Answer is Yes Comprehensive Education Program Look for a provider that offers a robust, multi-channel education program covering all aspects of the 401(k) plan, including: 1. Enrollment process and eligibility requirements 2. Investment options and asset allocation strategies 3. Tax advantages and contribution limits 4. Retirement income planning and distribution […]
